Real Estate industry cautiously optimistic about 2021
MINNEAPOLIS. (KEYC) - After a rollercoaster of a market that ended 2020 on a high note, Minnesota real estate leaders say their outlook for 2021 comes with cautious optimism.
Strengths that rounded out 2020 include low-interest rates and a jump in first time home buyers. Experts expect these trends to continue this year, including an ongoing demand for homes with secluded offices suitable for working from home. But there are some concerns on the horizon, an expected increase in interest rates, likely during the second half of the year, and lack of inventory.
“We just don’t have any homes to sell. People are just kind of staying in their homes and staying pat. which makes sense I suppose during the COVID but we really need more inventory because the state’s population has grown, the Mankato area has grown very strong with a strong university and a strong economy and yet we’re not seeing enough homes built at affordable price levels and we’re not seeing enough people move from the homes that they’re currently in.”
Galler says inventory is such a concern that they’re actually selling more homes than going on the market each month, looking at 50 percent reductions in the number of homes that are available in Minnesota.
Copyright 2021 KEYC. All rights reserved.